FX.co ★ GBP/USD bouncing perfectly as expected, remain bullish

The price has tested our buying level and has bounced perfectly from it. We remain bullish above 1.2633 (Fibonacci retracement, Fibonacci extension, horizontal pullback support, bullish divergence) and we expect a further rise above this level to at least 1.2886 resistance (Fibonacci retracement).

The RSI (34) sees major support above the 26% level where we expect a bounce from and also sees bullish divergence signalling that a strong bounce is expected.

Buy above 1.2633. Stop loss at 1.2483. Take profit at 1.2886.